Is demand elastic or inelastic , Financial Accounting

The demand curve for a product is given by Qxd = 2,000 - 5Px + 0.2Pz, Where, Pz = $500.
a. What is the own price elasticity of demand when Px = $120? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price below $120?
b. What is the own price elasticity of demand when Px = $250? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price above $250?

Posted Date: 3/12/2013 8:05:07 AM | Location : United States







Related Discussions:- Is demand elastic or inelastic , Assignment Help, Ask Question on Is demand elastic or inelastic , Get Answer, Expert's Help, Is demand elastic or inelastic Discussions

Write discussion on Is demand elastic or inelastic
Your posts are moderated
Related Questions
Star Corporation issued both common and preferred stock during 19X6. The stockholders' equity sections of the company's balance sheets at the end of 19X6 and 19X5 follow.

An investment under consideration has a payback of seven years and a cost of $724,000. If the required return is 12 percent, what is the worst-case NPV? The best-case NPV? Explain.

zorn conducted his professional practice through zorn, inc. the corporation uses a fiscal year ending september 30 even though the business purpose test for a fiscal year cannot be

Q. Explain Zero Base Budget? Zero base budgeting can be defined as - 1) An operating planning and budgeting process which requires each manager to justify his entire budget

Harper Co. provided the following information concerning two products: contribution margin per unit- product 12 $46 Contribution margin per unit-product 43 $30. Machine hours requi

The following data has been taken from the management accounting reports from Spinnaker Sales. Div A -Income from operations $1,800,000 Total service department charges $1,600,000.

Tony and Suzie are ready to expand Great Adventures even further in 2019. Tony believes that many groups in the community (for example, Boy Scouts, church groups, civic groups, and

Q. What is Lifetime Learning Credit? Lifetime Learning Credit - This allows a credit for 20 percent of qualified tuition and fees paid by taxpayer with respect to one or more s

Illustration of Admission of a new partner XYZ have been trading as equal partners having capital contributions of £300,000, £250,000 and £200,000 respectively.  They  agreed

1-Dec $92,000.00 of 5% bonds are purchased with check. Interest is paid once a year and will mature in 5 years. The market yield for these bonds is 4%.